During the London InterBank Offered Rate (LIBOR) transition, and post LIBOR’s end date of June 30, 2023, the goal for all should be that (1) the effective interest rates be generally economically equivalent as a result of the...more
3/25/2025
/ Banking Sector ,
Borrowers ,
Final Rules ,
Financial Conduct Authority (FCA) ,
Financial Institutions ,
Financial Markets ,
Financial Regulatory Reform ,
Interest Rates ,
IRS ,
Libor ,
Loans ,
Regulatory Requirements ,
Secured Overnight Funding Rate (SOFR) ,
UK
On October 1, 2024, the United Kingdom Financial Conduct Authority (UK FCA) phased out ‘Zombie’ LIBOR, as a transitional benchmark, with the move to alternative “risk-free” rates....more
2/6/2025
/ Banks ,
Benchmarks ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Enforcement ,
Financial Conduct Authority (FCA) ,
Financial Institutions ,
Financial Regulatory Reform ,
Fraud ,
Interest Rates ,
Libor ,
UK
There are major issues arising from the phaseout of the US Dollar London InterBank Offered Rate (LIBOR), which will soon become apparent in connection with LIBOR’s fast-approaching end date. This will dramatically impact many...more
Subject to appeal, ICE Benchmark Administration Limited (IBA) will be required to publish synthetic USD LIBOR beginning on July 1 so as to reduce any market disruption and maintain the orderliness of the financial system....more
In a welcome change in approach to financial market regulation, the United Kingdom’s Financial Conduct Authority (FCA) is requiring market participants to deliver good outcomes for consumers.
On July 27, 2022, the FCA...more
1/25/2023
/ Consumer Protection Laws ,
Enforcement ,
Fair Valuation ,
Financial Conduct Authority (FCA) ,
Financial Crimes ,
Financial Markets ,
Financial Stability Acts ,
Governance Standards ,
Private Right of Action ,
Securities and Exchange Commission (SEC) ,
Suitability Requirements ,
UK
Last year, the United Kingdom Financial Conduct Authority (UK FCA) announced the following: -
‘Zombie’ USD LIBOR for proposed use from July 1, 2023, through September 30, 2024, except for cleared derivatives -
1-Month and...more
The Commodity Futures Trading Commission, under a reconstituted Commission, is signaling a new era of aggressive enforcement of the Commodity Exchange Act.
Significant Violations and Penalties -
United States-
On...more
According to government regulators across the globe, everyone should have been acting to slow USD LIBOR use for the next six weeks. Except, of course, for the next six weeks…
UK FCA Announcement-
It is now official –...more
Snidely Whiplash kidnaps Nell and, in the show’s opening, ties her to the railroad tracks to get even with his nemesis, Dudley Do-Right, of the famed Royal Canadian Mounted Police. Menacing music plays.
In each episode,...more
11/4/2021
/ Alternative Reference Rates Committee (ARRC) ,
CFTC ,
Comptroller ,
Consumer Financial Protection Bureau (CFPB) ,
FDIC ,
Federal Reserve ,
Financial Conduct Authority (FCA) ,
Interest Rates ,
ISDA ,
Libor ,
NCUA ,
Proposed Legislation ,
Secured Overnight Funding Rate (SOFR) ,
Securities and Exchange Commission (SEC) ,
Trust Indenture Act ,
UK
On September 29, 2021, the UK Financial Conduct Authority (UK FCA) proposed that synthetic LIBOR rates (i.e. ‘Zombie’ LIBOR) be published next year for certain currencies, for a maximum of ten (10) years. In addition, it also...more
The best benchmark for a company or a bank primarily depends upon the entity’s debt/interest rate swap situation as summarized below. This analysis also touches on the rationale behind the derivatives market's recent embrace...more
This article summarizes the significant problems with the LIBOR transition in the US as compared to the UK (and the rest of the world).
This summary is based upon the keynote speech at the United Kingdom Financial Conduct...more
As part of the ongoing transition from the London InterBank Offering Rate (LIBOR) to the Secured Overnight Financing Rate (SOFR) recommended by the Alternative Reference Rates Committee (ARRC) as an alternative rate, an...more
6/15/2021
/ Alternative Reference Rates Committee (ARRC) ,
CFTC ,
FDIC ,
Financial Institutions ,
Interest Rates ,
ISDA ,
Libor ,
OCC ,
Secured Overnight Funding Rate (SOFR) ,
Securities and Exchange Commission (SEC) ,
Sterling Overnight Index Average (SONIA) ,
UK
The United Kingdom’s Financial Conduct Authority announced the future cessation and loss of representativeness of worldwide LIBOR rates.
Potential Detrimental Developments -
Recent Events -
On Friday, March 5,...more
3/11/2021
/ Alternative Reference Rates Committee (ARRC) ,
CFTC ,
Department of Justice (DOJ) ,
FBI ,
Financial Conduct Authority (FCA) ,
Fraud ,
Interest Rates ,
ISDA ,
Libor ,
New York ,
NYDFS ,
OCC ,
Proposed Legislation ,
Securities and Exchange Commission (SEC) ,
Transitional Arrangements ,
UK
The focus of regulators in the United States and the United Kingdom had been to correctly transition away from LIBOR due to past bank manipulations.
After nearly two (2) years in the making, the International Swaps and...more